Ethereum Gains Strength as Bitcoin Stalls – Altcoins May See Big Upside

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As August comes to a close, crypto markets are showing clear divergence. Bitcoin (BTC) is gradually losing momentum, while capital is flowing toward Ethereum (ETH). By August 27, Bitcoin had slipped 0.7% in the past week, whereas Ethereum surged 8.24% to break above $4,633. This shift has many analysts suggesting that altcoins could benefit in the weeks ahead.

According to Arthur Azizov, founder of B2 Ventures, Ethereum’s strength has boosted overall market risk appetite. For example, Solana (SOL) jumped 15% during the same week, and further gains are likely if Ethereum maintains upward momentum.

Azizov notes that the market setup hinges on Ethereum’s performance:

• If ETH surpasses $5,000, altcoins may climb another 20–30% in September.

• If ETH remains between $4,400 and $4,900, sideways trading with only catalyst-driven movements is expected.

• If ETH falls below $4,400, even strong coins like XRP and Solana risk 10–15% declines.

This makes Ethereum’s next breakout or breakdown a critical driver for the altcoin market outlook.

Bitcoin and Ethereum Pull Back From Yearly Highs

Both Bitcoin and Ethereum hit fresh yearly highs in August, with Bitcoin touching $124,457 and Ethereum peaking at $4,626. However, both assets have since pulled back.

According to Ruslan Lienkha, Chief of Markets at YouHodler, this decline mirrors the broader correction in global markets. U.S. equities also retreated from all-time highs during the same period, highlighting a shared investor sentiment shift.

Key Catalysts for September: Inflation, Rates, and Jobs

Lienkha emphasizes that the macroeconomic environment will play a decisive role in shaping crypto’s next trend. In particular, three factors stand out:

• U.S. inflation data

• Federal Reserve interest rate policy

• Labor market conditions

The interaction of these elements will determine overall risk appetite across both traditional and digital markets. As a result, crypto investors are closely watching September’s economic releases to gauge whether the pullback is temporary or the start of a deeper correction.